World gold prices continued to rise in the trading session on August 6, marking the fourth consecutive increase session and reaching a 7-week high. The weakening USD along with expectations that the US Federal Reserve (Fed) will be less tough with monetary policy continuing to support the precious metals market.
As of 2:25 PM Vietnam time, spot gold prices increased by 0.41%, to 4,262.17 USD/ounce. Meanwhile, US gold futures contracts increased by 0.2%, to 4,312.80 USD/ounce.
The increase in gold takes place in the context of increased pressure on the USD, helping the precious metal become more attractive to investors holding other currencies. In addition, oil prices maintaining in a low zone also contributed to easing concerns about inflation, thereby reducing pressure for the Fed to continue raising interest rates.
Gold is considered a beneficial asset in a low interest rate environment because it does not bring yields. Currently, the market is also reducing expectations that the Fed will raise interest rates in the upcoming meeting, after some US economic data showed that the labor market showed signs of cooling down.
The focus of investors is now shifting to the US non-farm payroll report released on August 7. Previously, the ADP private sector jobs report showed that the recruitment rate in July slowed down, increasing expectations that the Fed would have more room to maintain a more flexible monetary policy.
On the precious metals market, spot silver prices fell 0.28% to 61.88 USD/ounce. Spot platinum rose 1.10% to 1,753.65 USD/ounce, while palladium futures rose 0.58% to 1,377.50 USD/ounce. On the energy market, Brent oil prices rose 0.09% to 79.52 USD/barrel, while WTI oil fell 0.21% to 75.06 USD/barrel.
